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As Brazil’s polling day draws closer, another data point emerged on Friday for the voters’ consideration: consumer price inflation is back above the upper limit of the government’s target range and shows no sign of falling back soon.

The IBGE, Brazil’s statistics office, said CPI in the month to mid-September was 0.39 per cent, bringing the accumulated rate over the past 12 months to 6.62 per cent. That was above the consensus forecast of 0.35 per cent for the month, according to Bloomberg. Continue reading »

There is more gloomy news for the world’s second largest economy. A comprehensive official survey of Chinese households, businesses and banks finds demand for loans slackening further in the third quarter, suggesting scant prospects of a reprieve from the credit slump seen in August and July.

Some 3,100 banks interviewed by the People’s Bank of China (PBoC), the central bank, reported a significant easing in loan demand among all three categories of firms – small, medium and large – for the third quarter, which ends at the end of September.

The loan demand index fell to 66.6 per cent, down from 71.5 per cent (see chart). The muted demand for loans is set to create headwinds for the PBoC’s initiative this week to boost economic growth by injecting Rmb500bn ($81bn) into the five largest state-owned banks, economists said. Continue reading »

** FT News **

* Alibaba prices shares in IPO at $68 | The ecommerce group will raise $21.8bn after pricing its shares at the top of an earlier $66-$68 range for an IPO that represents a landmark for China and Jack Ma

* Russia’s rich feel chill from the Kremlin | The Yevtushenkov arrest follows the recent re-emergence of harassment of western companies, which have seen branches and offices closed Continue reading »

Japanese fast food lovers: Indonesian yakitori and chicken nuggets may be coming to a table near you soon as Southeast Asia’s biggest economy tries to take advantage of China’s latest food safety woes.

McDonald’s Japan stopped importing Chinese chicken in July, part of a broader backlash after a major Chinese supplier was accused of selling meat beyond its shelf-life. Continue reading »

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The best industrial policy, so the saying among some economists and policy makers famously used to go, is no industrial policy. But a new study from the Inter-American Development Bank (IDB) suggests it is time to think again.

Why? Well, industrial policy may not fully explain Latin America’s dramatic productivity slide over the past decades, but it could perhaps help revert it. Continue reading »

** FT News **

* Alibaba prices shares in IPO at $68 | The ecommerce group will raise $21.8bn after pricing its shares at the top of an earlier $66-$68 range for an IPO that represents a landmark for China and Jack Ma

* Sanctions see Russia’s hardmen rise | Russia’s business community is in shock over the arrest of Vladimir Yevtushenkov, one of the country’s leading industrialists, and they are afraid Continue reading »

No devaluation here

One could say that a clear sign that Venezuela – a country where beauty enhancements are a serious issue – has hit rock bottom is that there is now a shortage of breast implants. But as FastFT reports, the real nervousness appears to lie elsewhere.

Growing concerns over the embattled Caribbean country’s ability and willingness to make $4.5bn of debt repayments next month has pushed the cost of insuring against a default to the highest in seven months. Continue reading »

On Valentine’s Day 2011, a court in Ecuador ordered Chevron, the US oil major, to pay $19bn to indigenous peoples and villagers to compensate for pollution caused between 1964 and 1990 by Texaco, which Chevron had bought in 2001. It was the biggest award ever against a corporation outside the US and was hailed by environmental and other campaigners worldwide as a landmark victory for usually voiceless and defenceless peoples over the usually all-powerful Big Oil.

But Chevron felt it had been treated unfairly and counter-sued in the US. On March 4 this year, Judge Lewis Kaplan of the US District Court in New York found Steven Donziger, the US lawyer who represented the Ecuadorian plaintiffs, liable for leading a multifaceted racketeering conspiracy. Continue reading »

The undisputed headline grabber at the end of South Africa’s monetary policy committee meeting on Thursday was the surprise announcement that Gill Marcus would not be seeking to renew her five-year term as central bank governor when it expires on November.

There is little doubt she will be missed by the financial community and all eyes will be on the appointment of her successor, with the hope that the South African Reserve Bank’s credibility and integrity are maintained. Continue reading »

By Tassos Stassopoulos, Alliance Bernstein

Rapidly ageing societies in developing countries represent important markets for consumer companies. However, it should be understood that vast cohorts of elderly people heading into the sunny uplands of their lives does not necessarily imply a bright future for investors.

It’s easy to overlook the ageing trend in emerging markets. Countries like India and China are home to the world’s youngest populations in terms of size. Yet as birth rates decline and healthcare improves, older people will constitute a growing percentage of the population. In the top 12 emerging markets, the over-65 demographic is growing at an annual rate of approximately 3.7 per cent (see chart) — nearly double the rate in developed countries. Continue reading »

** FT News **

* Warning over Isis cyber threat | David De Walt, head of the technology security company FireEye, says terrorist groups are hoarding malicious software from underground markets

* Arrests signal new order in Russia | Charges against tycoon spur speculation of a shift in a Moscow rattled by tensions over Ukraine and the effect of western sanctions Continue reading »

It is not news that under its ousted dictator, Zein al-Abidine Ben Ali (left), Tunisia was a kleptocracy, its heavily-regulated economy milked by the disgraced ruler, his extended family and others with political connections.

But now three years after the revolution which toppled Ben Ali, the World Bank says that restrictions on economic participation which blocked competitors and allowed his cronies to feather their nests are still in place. These continue to stifle the private-sector, ensuring that only a small number of people benefit at the expense of the majority of Tunisians. The result is poor economic growth and high youth unemployment –the very reasons which drove much of the discontent that led to the 2011 revolt against Ben Ali. Continue reading »

China’s plan to spread the wealth of coastal cities into poorer interior regions is starting to pick up speed, with better transport infrastructure in particular likely to accelerate the process, according to HSBC Global Research.

While China’s coastal regions have seen breakneck growth – the nominal GDP of seven coastal provinces has increased nearly 200 times since 1978 – its vast inland areas, remote and undeveloped, have lagged behind. Per capita income in the coastal regions of China is twice as high as in inland provinces. Continue reading »

** FT News **

* Somalia tackles donors’ corruption concerns | Somalia is cancelling or renegotiating contracts ranging from oil exploration to port operations over concerns about government corruption

* Arrests signal new order in Russia | Charges against tycoon spur speculation of a shift in a Moscow rattled by tensions over Ukraine and the effect of western sanctions Continue reading »

After taking a battering from Brazil’s president Dilma Rousseff in her effort to win back a lead in the polls, rival candidate Marina Silva has responded with an emotional advertisement calculated to win over low-income voters.